Good idea?

jonesMUFCforever

National_Debtline wrote: »

Hi there,

It's also a much better idea to use all spare money to clear debt - rather than put some in to savings. The reason being is that return you get on savings would be far less than the interest charged to you on your borrowing. Once the borrowing has been cleared you will then have more money to save.

Hope this makes sense.

Best wishes,

David @ NDL

Normally I would agree with you.
However everybody needs to have an emergency fund.
People in debt may not to have access to extra credit in an emergency - who would you suggest they turn to - Wonga perhaps?
(Other payday loans are available).

makemerich12

Thank you all for the advise! I have thanked you all. :money: I did in the end go with the loan that not also paid off my credit card but my old car while remaining cheaper and faster to pay pff

Apples2

Have you cut up the card now? You said "no, never" would you use it again.

If you haven't, because you never know, that's exactly the slippery slope so many people slide down into debt.

Good luck to you.

ReadingTim

And did they also sucker you into an ISA as well? If so, see the guide to clearing debt to and see why having a loan and savings isn't as wise as it first appears, and can actually be a false economy.

The fact of the matter is that the bank isn't there to help you, it's there to make money out of you. This non-mandatory 'account review' was a sales pitch, and you've fallen for it. Personally, I'd cancel the new loan if you're still in the cooling off period and concentrate on the debt.

And to those who say it's useful to have an emergency fund, yes, but the fact that the OP's been accepted for this loan (assuming he cancels it) means he's likely to be accepted for future loans of a similar amount, so can apply for one in the event an emergency arises.

Ilona

makemerich12 wrote: »

Thank you all for the advise! I have thanked you all. :money: I did in the end go with the loan that not also paid off my credit card but my old car while remaining cheaper and faster to pay pff

Aha, I se the bank clerk made a nice bonus for themselves then. I have been with the same bank for maybe 40 years or more, and have never been asked to go in for a review. They once offered me a reserve fund, I said, no thanks, don't need it.

Good for you if you have saved some money, but now cut your card up and don't rack up any more debt until you have paid that loan off.
Ilona

makemerich12

obviously people are going to have each views if its a good or bad thing i have done and its my thinking that i have done the right thing to help me out. I have paid two things of at a cheaper way and faster.

I haven't yet sorted the isa i'm still looking for the best possible one where as you can put in a grand or less , One question i have my card has now come back showing £52 in credit I'm guessing for late fees that never was does the mean I'll get this back?

National_Debtline

jonesMUFCforever wrote: »

Normally I would agree with you.
However everybody needs to have an emergency fund.
People in debt may not to have access to extra credit in an emergency - who would you suggest they turn to - Wonga perhaps?
(Other payday loans are available).

You're absolutely right, and we would always urge our clients to ensure they list a small amount for emergencies and contingencies within their financial statement for sure. In addition, they should always set aside an amount to cover the things that they may pay for annually - such as car servicing and MOTs etc.

Best wishes,

David @ NDL.

MEM62

makemerich12 wrote: »

obviously people are going to have each views if its a good or bad thing i have done and its my thinking that i have done the right thing to help me out. I have paid two things of at a cheaper way and faster.

Sometimes you have to be the best judge of your own decisions and if you are happy with the choices you have made then good on ya!

I haven't yet sorted the isa i'm still looking for the best possible one where as you can put in a grand or less , One question i have my card has now come back showing £52 in credit I'm guessing for late fees that never was does the mean I'll get this back?

If still available Virgin were offering 3% fixed for five years on a cash ISA. Withdrawals are allowed (subject to a loss of interest penalty)so you don't have to commit to your money being tied up.

Good luck. :-)

27col

I've had a bank account for over 50 years and have never been asked if I've had a review. Am I doing something wrong?

Wilkins

27col wrote: »

I've had a bank account for over 50 years and have never been asked if I've had a review. Am I doing something wrong?

Maybe you never gave the impression of having any money. My mistake was to pay in occasional Premium Bond winnings. This was obviously a trigger for a sales opportunity. This was with the Co-op bank some years ago and I mark their slide from that point.